Form 8-K NAVISTAR INTERNATIONAL For: Feb 04
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section�13 or 15(d)
of the�Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February�4, 2015
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NAVISTAR INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
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| Delaware | � | 1-9618 | � | 36-3359573 |
| (State or other jurisdiction of incorporation or organization) |
� | (Commission File No.) |
� | (I.R.S. Employer Identification No.) |
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| 2701 Navistar Drive Lisle, Illinois |
� | 60532 |
| (Address of principal executive offices) | � | (Zip Code) |
Registrant�s telephone number, including area code: (331)�332-5000
(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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| � | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| � | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| � | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| � | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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| ITEM�7.01. | REGULATION FD DISCLOSURE. |
In accordance with General Instruction B.2. to Form 8-K, the following information shall not be deemed �filed� for purposes of Section�18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Navistar International Corporation (the �Company�), one of the nation�s largest combined commercial truck, school bus and mid-range diesel engine producers, will present via live web cast its Analyst Day at the Company�s world headquarters in Lisle, Illinois on Wednesday, February�4th. A live web cast is scheduled at approximately 1:00 PM Central. Speakers on the web cast will include: (i)�Troy Clarke, President and Chief Executive Officer and Director, (ii)�Walter Borst, Executive Vice President and Chief Financial Officer, (iii)�Bill Kozek, President, Truck and Parts, (iv)�Persio Lisboa, President, Operations, (v)�Denny Mooney, Senior Vice President, Global Product Development, (vi)�Michael Cancelliere, Senior Vice President, Global Parts and Customer Service, (vii)�and other company leaders. Copies of the slides containing financial and operating information to be used as part of the web cast are attached as Exhibit 99.1 to this Current Report and are incorporated by reference herein.
The web cast can be accessed through a link on the investor relations page of Company�s web site at http://www.navistar.com/navistar/investors/webcasts. Investors are advised to log on to the website at least 15 minutes prior to the start of the web cast to allow sufficient time for downloading any necessary software. The web cast will be available for replay at the same address approximately three hours following its conclusion, and will remain available for a period of 12 months or such earlier time as the information is superseded or replaced by more current information.
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International� brand commercial and military trucks, MaxxForce� brand diesel engines, and IC Bus� brand school and commercial buses. The Company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.navistar.com.
| ITEM�9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits.
The following documents are filed herewith:
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| Exhibit No. |
�� | Description |
| 99.1 | �� | Slide Presentation for Analyst Day Web Cast to be held on February�4th. |
Forward Looking Statements
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section�27A of the Securities Act of 1933, as amended, Section�21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and the Company assumes no obligation to update the information included in this report. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as �believe,� �expect,� �anticipate,� �intend,� �plan,� �estimate,� or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October�31, 2014. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| NAVISTAR INTERNATIONAL CORPORATION | ||||
| (Registrant) | ||||
| ����By: | ����/S/ WALTER G. BORST | |||
| Name: | ����Walter G. Borst | |||
| ��Title: | ����Executive Vice President and ����Chief Financial Officer | |||
Dated: February 4 , 2015
EXHIBIT INDEX
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| Exhibit No. |
�� | Description |
| 99.1 | �� | Slide Presentation for Analyst Day Web Cast to be held on February�4th . |
| Exhibit 99.1 �
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Exhibit 99.1
2015 ANALYST DAY FEBRUARY 4, 2015
KEVIN SADOWSKI
VICE PRESIDENT OF INVESTOR RELATIONS
International� is a registered trademark of Navistar Inc.
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Before We Begin�
Analyst Day App is Here!
Download it @ http://eventmobi.com/navistaranalystday2015/
Instructions
1. Enter the link above on to your device�s browser or scan the provided QR code.
2. While in your browser, go to the options menu and select �Add to Homescreen�.
3. An App icon will automatically appear on your device�s homescreen, and you now have access to our Analyst Day App!
4. Be sure to register to this event by clicking the �LOGIN� button on the top right hand-corner of the app screen and filling out all the required fields.
5. Enjoy!
Useful Features:
Question Submission for Our Q&A Sessions Start Submitting Today!*
Full Day Agenda
Speaker Bios
Full Access to All Analyst Day Materials
Much More!
*May be submitted through our app at any time prior to or during our Analyst Day
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This Afternoon�s Agenda
Presentation Time
Opening Remarks with Kevin Sadowski 1:00pm-1:05pm
Troy Clarke 1:05pm-1:25pm
Bill Kozek 1:25pm-1:45pm
Michael Cancelliere 1:45pm-1:55pm
Q&A Session #1 1:55pm-2:20pm
Break 2:20pm-2:35pm
Persio Lisboa 2:35pm-2:55pm
Denny Mooney 2:55pm-3:10pm
Walter Borst 3:10pm-3:30pm
Q&A Session #2 3:30pm-3:55pm
Closing Remarks with Troy Clarke 3:55pm-4:10pm
International� is a registered trademark of
, Inc.
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Safe Harbor Statement
It�s Up Time At
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section�27A of the Securities Act of 1933, as amended, Section�21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and the Company assumes no obligation to update the information included in this report. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as �believe,� �except,� �anticipate,� �intend,� �plan,� �estimate,� or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October�31, 2014. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
International� is a registered trademark of Inc.
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Other Cautionary Notes
The financial information herein contains audited and unaudited information and has been prepared by management in good faith and based on data currently available to the Company. Certain non-GAAP measures are used in this presentation to assist the reader in understanding our core manufacturing business. We believe this information is useful and relevant to assess and measure the performance of our core manufacturing business as it illustrates manufacturing performance. It also excludes financial services and other items that may not be related to the core manufacturing business or underlying results. Management often uses this information to assess and measure the underlying performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results. The non-GAAP numbers are reconciled to the most appropriate GAAP number in the appendix of this presentation.
International� is a registered trademark of Inc.
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Some Final Logistics
Emergency- Exit through any door, down the stairs, and out through the main entrance atrium doors
Please Silence All Devices
Restrooms- Exit left doors, down the hallway, then on your right
Refreshments- Exit right doors
Thank you!
International� is a registered trademark of Inc.
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2015 ANALYST DAY FEBRUARY 4TH, 2015
TROY CLARKE CHIEF EXECUTIVE OFFICER
International� is a registered trademark of Inc.
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Analyst Day 2015
Agenda
Market Share Growth, Pricing Plans, Bill Kozek
Brand and Promotion
Dealer Service and Parts Michael Cancelliere
Q & A
Operational Excellence Persio Lisboa
Product, Technology and Engine Plans Denny Mooney
Path to Positive Earnings Walter Borst
Q & A
International� is a registered trademark of Inc.
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Analyst Day 2015
What you should take away from today:
Significant progress report
Who we have become
Strategy and plans for the future
Answers to your questions
International� is a registered trademark of Inc.
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Evolution of the International Strategy
2008 � 2012 2012 � 2014 2015 � 2020 Growth Turnaround Advantage
Revenue growth Urgent turnaround Finish the turnaround
Acquisitions EGR -> SCR Close the cost gap
Reduce warranty
Innovation/Joint ventures Introduce Cummins engines
Global Reduce cost Increase market share
Lean enterprise
Integrated engine COGS Uptime Advantage
Integrated body Structural cost Best-in-class integration
EGR emission Conserve cash Partners and alliance relationships
Cost ROIC Fix/Close/Sell
High performance dealers
Convenience Working capital Connected vehicle
Business units Pause global growth leadership
Uptime advantage
Entrepreneurial culture Functional organization Improve price position
Benchmark driven
Leadership Advantage
Vision and mission
Values
Create leaders at every level
International� is a registered trademark of Inc.
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Evolution of the International Strategy
2008 � 2012 Growth
Revenue growth
Acquisitions
Innovation/Joint ventures
Global
Integrated engine
Integrated body
EGR emission
Cost
Convenience
Business units
Entrepreneurial culture
International� is a registered trademark of Inc.
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Evolution of the International Strategy
2012 2014 Turnaround
Urgent turnaround
EGR -> SCR
Introduce Cummins engines
Reduce cost
COGS
Structural cost
Conserve cash
ROIC Fix/Close/Sell
Working capital
Pause global growth Functional organization Benchmark driven
International� is a registered trademark of Inc.
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Rapid Deployment of Emission Compliant Products On-Time and On-Budget
Full Line of SCR Engines
International� is a registered trademark of Inc.
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Accomplished Ten Years Of Progress
� In The Last Two Years
Improved Lowered Break-Cash Position Even Point
Divested Non-core Engine Businesses and Technology Joint Ventures EGR SCR
Consolidated Improved Manufacturing Quality
Initiated Lean Reduced Practices Warranty
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International� is a registered trademark of Inc.
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Evolution of the International Strategy
2012 � 2014 Turnaround
Urgent turnaround
EGR -> SCR
Introduce Cummins engines
Reduce cost
COGS
Structural cost
Conserve cash
ROIC Fix/Close/Sell
Working capital
Pause global growth
Functional organization
Benchmark driven
International� is a registered trademark of Inc.
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Evolution of the International Strategy
2015 2020
Advantage
Finish the turnaround
Close the cost gap Reduce warranty Increase market share Lean enterprise
Uptime Advantage
Best-in-class integration Partners and alliance relationships High performance dealers Connected vehicle leadership Uptime advantage Improve price position
Leadership Advantage
Vision and mission Values Create leaders at every level
International� is a registered trademark of Inc.
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Market Share Growth, Pricing Plans, Brand and Promotion
2015 � 2020 Advantage
Finish the turnaround
Close the cost gap
Reduce warranty
Increase market share
Uptime Advantage
Best-in-class integration
Partners and alliance relationships
High performance dealers
Connected vehicle leadership
Uptime advantage
Improve price position
Leadership Advantage
Bill Kozek
President, Truck and Parts
International� is a registered trademark of Inc.
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Industry Leading Uptime
Fewer service incidents
Integrated Customer Support, Parts and Service
Shorten repair times
Real time monitoring Remote diagnostics
Now over 80,000 connected
International� is a registered trademark of Inc.
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Distribution and Service plans
2015 � 2020 Advantage
Finish the turnaround
Close the cost gap
Reduce warranty
Increase market share
Uptime Advantage
Best-in-class integration
High performance dealers
Connected vehicle leadership
Uptime advantage
Improve price position
Leadership Advantage
Vision and mission
Values
Create leaders at every level
Michael Cancelliere Senior VP, Global Parts�& Customer Service
International� is a registered trademark of Inc.
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Operational Excellence
2015 � 2020 Advantage
Finish the turnaround
Close the cost gap
Reduce warranty
Increase market share
Lean enterprise
Uptime Advantage
Best-in-class integration
Partners and alliance relationships
High performance dealers
Connected vehicle leadership
Uptime advantage
Improve price position
Leadership Advantage
Vision and mission
Values
Create leaders at every level
Persio Lisboa President, Operations
International� is a registered trademark of Inc.
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Product and Engine Plans
2015 � 2020 Advantage
Finish the turnaround
Close the cost gap
Reduce warranty
Increase market share
Lean enterprise
Uptime Advantage
Best-in-class integration
Partners and alliance relationships
High performance dealers
Connected vehicle leadership
Uptime advantage
Improve price position
Leadership Advantage
Vision and mission
Values
Create leaders at every level
Denny Mooney Senior VP, Global Product Development
International� is a registered trademark of Inc.
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Path to Positive Earnings
2015 � 2020 Advantage
Finish the turnaround
Close the cost gap
Reduce warranty
Increase market share
Lean enterprise
Uptime Advantage
Best-in-class integration
Partners and alliance relationships
High performance dealers
Connected vehicle leadership
Uptime advantage
Improve price position
Leadership Advantage
Vision and mission
Values
Create leaders at every level
Walter Borst Executive Vice-President and Chief Financial Officer
International� is a registered trademark of Inc.
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Leadership Advantage
International� is a registered trademark of Inc.
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How We Operate
Vision
Products, Services, People you count on
Mission: It�s Uptime at International
PEOPLE WORKING TOGETHER
One Navistar
-One time
-Common data
-Functional excellence
-Accountable
-Learning organization
-Recognition/celebration
LEAN ENTERPRISE
Navistar Way
-Waste elimination
-Continuous improvement
-Leaders as teachers
-Process flow perspctive
-Evidence-based decisions
-Visual management
-Raise your hand
CUSTOMER SATISFACTION
Navistar Advantage
-Best Uptime
-Trucks designed to stay on the road
-Defect �free trucks delivered on the date promised
-Fast dealer service/repair
Values
It Starts With Me
Be Heard Create Raving Fans Better Every Day Hours Not Days Got Your Back Celebrate
International� is a registered trademark of Inc.
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BILL KOZEK
PRESIDENT, TRUCK AND PARTS
International� is a registered trademark of , Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
VIDEO
International� is a registered trademark of Inc.
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International� is a registered trademark of , Inc.
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Capitalize on Industry Momentum
Economy is improving. Third quarter GDP growth revised up to 5.0%
Dip in oil prices helped boost spending in on-highway while slowing sales in vocational applications like oil and gas exploration
International� is a registered trademark of Inc.
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Capitalize on Industry Momentum
Class 8 volume was highest since 2006, with truck tonnage index 136.8, the highest level on record
International� is a registered trademark of , Inc.
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Unit Goals for FY2015
INDUSTRY MEDIUM HEAVY SEVERE BUS
2014
342,000 15,000 25,800 9,000 9,900
Actual
2015 19,000�26,800�9,300�10,900 -
368,000
Forecast 20,000 27,800 10,300 11,400
Market
24-27% 14-16% 15-17% 40-45%
Share
International� is a registered trademark of Inc.
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SCR Coverage in Medium Duty Catalyst for Growth
4,000�5,000 Unit Growth in FY2015
Expanded coverage of Crew Cab Day Cab DuraStar/ISB to nearly all
Low Cab Extended Cab applications
Mid-High Cab Allison 1000, 2000, 3000 Focused segments and Beverage Body Vertical/Vertical Exhaust competitive targets to
deliver volume and
Emergency Dual Staggered Tanks
margin goals
Four Wheel Drive Stationary Applications
Air�& Hydraulic Heavy emphasis on brakes dealer-led retail sales critical to growth
International� is a registered trademark of , Inc.
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DuraStar Delivers
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On Highway Growth with the Right Customers
1,000�2,000 Unit Growth in FY2015
Focused, Optimized specifications will drive performance and support small fleet business
OnCommand Connection remains a key differentiator among fleets and a primary FOCUSED SPECS enabler of uptime
FUEL � WEIGHT � DRIVER � COST
Although our backlog is growing, leverage our production capacity for customers with immediate needs
International� is a registered trademark of , NAVISTAR Inc.
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ProStar: Best-in-Class Integration, Superior Performance
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Horizon its up time
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Managing Our Used Truck Inventory
Need to take trades to manage new truck sales
Profitability
Best-in-Class certified
NEW
TRUCK Used Truck program SALES 180+ point inspection Working Unsurpassed warranty
Residuals Capital
Balance requires some Monitored by industry-compromise on each dimension leading technology
Robust demand-generation efforts to manage used truck inventory
International� is a registered trademark of NAVISTAR , Inc. 36
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Trade Cycle for EGR Engines Redefined
8,000 Inventory is expected to peak in FY2015, and
7,000
begin to normalize after
6,000 2017
5,000 Industry trade cycle 4,000 averages between 5-6 years, whereas our 3,000 recent cycle is 3-4 years
2,000
Newer, low mile vehicles 1,000 in the marketplace, operating like new once
0 Diamond Renewed
UTO Actual and Planned Receipts Normal Industry Trade Receipts
International� is a registered trademark of Inc.
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Focus on SCR Roll-Out with Long Term Growth
120%
100%
Increased
80%
coverage lead to increased 60% market share
40% 20% 0%
HEAVY MEDIUM
Configurations available now Configurations pending
Modest Growth
in FY2015
Final phase of SCR
roll-out
TEM-focused efforts
to drive preference
as the chassis of
choice
Capitalize on the
growth of
construction
International� is a registered trademark of Inc.
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WorkStar: The Most Well-Rounded Vehicle in its Class
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Bus Poised for Growth with Propane and ISB
1,000�1,500 Unit Growth in FY2015
Propane market continues to expand with projected increase of 500 units in FY2015
ISB mix is growing and an enabler for further market share growth in districts that require SCR
Thomas Diesel
Blue Bird Diesel Blue Bird Propane
IC Bus Diesel IC Bus Propane
International� is a registered trademark of NAVISTAR , Inc.
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CE Series: Protecting Our Most Precious Cargo
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Global and Export
International� is a registered trademark of Inc.
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IT�S UPTIME AT
International� is a registered trademark of NAVISTAR , Inc.
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ANALYST DAY: NAVISTAR PARTS FEBRUARY 4, 2014
Michael A. Cancelliere
Senior Vice-President, Global Parts and
Customer Service
International� is a registered trademark of NAVISTAR , Inc.
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International� is a registered trademark of Inc.
Parts and Service Support
Strength of the North America Dealer Network
800+ Dealer Locations 8,000 Service Bays 7,600 Technicians $350M+ Parts Inventory
Demonstrated Market Leadership
Maximize Uptime and
Customer Productivity
International� is a registered trademark of Inc.
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Parts�& Service Support Uptime
Project Confirmation 3.0
25% Dwell Time Reduction
Quality
Arrival Write-Up Triage Diagnostics Parts Repair Departure Admin Check
Get them out� Get them in� Get them fixed�
Quickly!
Service Level
Health Reports Customer Focus Authorization OnCommand Navistar/Dealer Fault Code Action Plans Connection Collaboration
OnCommand Repair
Parts Availability Lean Processes Advocate
3 International� is a registered trademark of , Inc.
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Navistar Parts Overview
2014 $2.5B revenue
NA Parts demonstrated Proprietary continued strength and All Makes growth throughout the turnaround period
Parts will remain a key
National Account Customers component of corporate
profitability and cash generation
Plays a key role in customer Uptime
When wheels are turning, and freight is moving, parts are being consumed
4 International� is a registered trademark of ,[Graphic] Inc.
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History of Leadership
1970: First OEM to introduce private label brand of all-makes parts
Today: Over 50 Product Lines and 2200
SKU�s
1988: First OEM to Introduce a national purchasing program
Today: $1 Billion in Annual Customer Billings
2014: First OEM to introduce a remote diagnostics solution with �open architecture�; gives customers freedom of choice
Today: 65% increase in Enrolled Vehicles
5 International� is a registered trademark of , Inc.
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Growth Opportunities � All Makes Growth
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Growth Opportunities�Fleetrite
Navistar
Better Gross Margin Expand Customer Reach 25-30% CAGR
Customer
OE Quality Trusted Brand One Stop Shopping
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Growth Opportunities�Product Life Cycle
Vehicle Component Replacement Rate
Lower Parts Maximum Consumption Parts
Standard
Warranty Consumption
Period Declining Customer
Rate Base
�Sweet Spot�
Replacement 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Vehicle Age
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Growth Opportunities � Investment in Technology
Parts Catalog OnCommand Connection
E-Commerce Enabler
Up-Selling
Real-Time Remote Diagnostics All Makes
Drives Customers to Dealership
Growth
Proactive Fault Code Management
Cross-Reference
9 International� is a registered trademark of , Inc.
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Summary
North America Parts
Segment Profit
Leverage the strength of the Navistar distribution network to provide maximum Uptime
Technology investments facilitate ease of doing business�& expanded customer reach
Parts growth will continue to drive EBIT
International� is a registered trademark of Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
Q&A
International� is a registered trademark of Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
VIDEO
International� is a registered trademark of , Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
BREAK ~15 MINUTES
International� is a registered trademark of, Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
VIDEO
International� is a registered trademark of Inc.
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2015 ANALYST DAY FEBRUARY 4, 2015
PERSIO LISBOA PRESIDENT, OPERATIONS
International� is a registered trademark of , Inc.
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Operations: Commitment to Excellence
Vision Excellence in Operations
Bes in C ss
Cost Quality
Integratio
Organization Structure Manufacturing First-Time Quality
Areas of
Focus: Lean Enterprise Material Warranty
2015�&
Beyond Product Launches Structural Cost Field Support
$120m lower manufacturing cost
Foundation: $640m in structural cost savings Drive to Significant material cost reductions Deliver, 50% improvement in working capital
2012 2014
Flawless product launches
Product quality significantly improved
International� is a registered trademark of Inc.
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Organization: One Operations Team
BEST-IN-CLASS INTEGRATION
UNIFIED ORGANIZATION SHARED LOCATION
Procurement
Product Development
Manufacturing
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Lean Enterprise: A Journey to Excellence
Manufacturing Operations Corporate Supply Base
SUPPORT THE OPERATOR
avistar Values
culture people process leadership
International� is a registered trademark of , Inc.
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Lean Enterprise: A Journey to Excellence
Be Heard Create Raving �
International is a registered trademark of Inc.
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Fans
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Lean Enterprise: A Journey to Excellence
Navistar Supplier Council
Celebrate
Be Heard Create Raving International(�)is a registered trademark of Inc.
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Fans
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Product Cost: Addressing Multiple Levers
Continuing Reductions in Product Cost
Optimized
Best Cost Manufacturing BEST-IN-CLASS Country Sourcing Footprint
INTEGRATION
Supplier Design Cost Footprint Opportunities
STRATEGIC
Supply Base SUPPLIER Horizon Rationalization Product
& Strategic COLLABORATION Launch Sourcing
International� is a registered trademark of Inc.
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Optimized Manufacturing Footprint
Previous Footprint
Divest non-core operations
Eliminate surplus capacity
Reduce fixed cost
Optimize productivity in core plants
Optimized Footprint
Enable optimized supply base footprint
International� is a registered trademark of Inc.
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Supplier Footprint
Historical Supplier Footprint
Reduce distance and freight
Shorten lead times
Reduce working capital
Benefit from lower regional
costs
Present Landscape (2015�& Beyond)
International is a registered trademark of Inc.
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Supply Base Rationalization�& Strategic Sourcing
Reduction in # of Direct Suppliers
Simplify portfolio of
(11%)
suppliers
(30%)
Strategically bundle and leverage purchasing spend
Reduce complexity cost
Strategic Sourcing
Increase scale
Machined Components Castings
Gain ongoing benefits as validation is completed
Hoses Tubes Fasteners
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Best Cost Country Sourcing
Relative % of BCCS will increase over next few years Decisions based on total cost of ownership
Leverage most competitive suppliers and regions
Drive technical validation for multiple groups of components
Reduce material and tooling cost
Global Sourcing Target
35%�40%
26.9%
Current Target
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Design Cost Opportunities
Example: New MY15 13-Liter Engine January 2015 target launch complete
Refreshed High- Achieved 1-2% fuel
Temperature EGR Design economy improvement EGR Valve Refresh Closed Circle Valve Single EGR Feed and Outlet Delete LT EGR Delete Optimize Plumbing
Exceeded $1,400 per unit cost target by more than $200
Continuous focus on design and content
Larger HP Turbine
Housing opportunities
One of many design optimization opportunities in the pipeline
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Horizon Product Launch
Four Platforms
Project Horizon
Leverage single cab
ProStar LoneStar DuraStar WorkStar
strategy Modular
One Common Cab Scalable
All truck platforms
3 Major Modules
Design for uptime Optimal cost and
Horizon Modular Approach: functionality
3 Major Systems, 21 Subsystems Reduction in
complexity
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Continued Product Cost Reductions
Our pipeline of activities provides high confidence in our future cost performance
Unlocks Future Enabler Savings to Date Savings
Manufacturing Cost
Optimized Manufacturing Footprint
Material Cost
Supplier Footprint
Supply Base Rationalization�& Strategic Sourcing
Best Cost Country Sourcing Design Cost Horizon Product Launch
Goal 5% Material Cost Reduction
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Quality continues to Improve
ProStar with Navistar Engines: Repair Rates
Twice as reliable
Targeting 25% improvement
ProStar w/2010 Emission EGR Engine ProStar w/2013 Emission SCR Engine Star w/2013 Emission SCR Engine
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Past the Peak of Legacy Warranty Issues
Population of legacy MaxxForce engines in warranty coverage continues to decline
Majority of 13L legacy MaxxForce engines out of regular warranty and in extended warranty cycle
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Effective Field Support
Improved Design�& New Repair Practices Strong Field Support
EGR Valve Single Stage Cooler
Improved engineering designs Streamlined triage and diagnostics Faster and less expensive repair practices Dealer Training Extensive dealer training Parts availability above 98%
Benefits
Rapid resolution and lower dwell High Level of Parts Availability time translate into better uptime Reduced cost per repair Positive impact on warranty expense
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Warranty Now in a Competitive Range
Major Improvement in Warranty Expense
Warranty Expense % Manufacturing Revenue
12%
10.7%
10%
FY 2013 : 7.7%
8%
6%
FY 2014: 3.7%
4%
2.6%
52% YOY improvement in warranty
2%
expense close to benchmark level
0%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
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Continued Cost Improvements will be Significant Portion of Q4 2015 EBITDA Margin Growth
Fully Implement
Previously Announced
Manufacturing Capacity Actions by Q4
Continued Material Structural Costs Cost Reductions of Approach 10% of
2 3% Per Year Revenues in Q4
Cost Improvements
Lower Breakeven Continue to Drive Point at our Brazilian Warranty Costs Operations Towards Best in Class Levels
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PRODUCT DEVELOPMENT � DENNY MOONEY
FEBRUARY 4, 2015
77
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Product Development
AGENDA:
Strategy
Technology
Going Forward
78
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Navistar Strategy to Leverage Best Global Suppliers
Leverage Leading-Edge Global Suppliers and Partners
Helps Deliver:
Uptime
Fuel Economy
Weight Efficiency
Safety
Cost
Best Technology
Customer Choice
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Navistar Strategy to Leverage Best Global Suppliers
Integrated Engineering
Fast to Market
2/2/2015 8:24 PM
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Integration: Engine Strategy
Class 8 Heavy-Duty Class 8 6/7 On-Highway Severe Service Medium
Supplier Engine Model Pro Lone 9900i Tran Pay Work Dura School Global/ Partner Star Star Star Star Star Star Bus Other
2/2/2015 8:24 PM
ISX-15 ? ? ? ? ? ISB-6.7 ? ? ? ? ISL-G ? Navistar N13 ? ? ? ? ? Navistar N10 ? ? ? Navistar N9 ? Propane 8.8L ?
Leverage MWM (South America) and JAC (China JV) for light- and medium-duty engines
Customer Choice and Leading-Edge Technology
81 International� is a registered trademark of [Graphics] , Inc.
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Integration: Transmissions
Torque Manual Automated Manual Convert
Supplier Engine Eaton Eaton Tremec Eaton Eaton Eaton EC SA Eaton DD12 iShift 4000 TC-10 Partner Model FR FAS TR RT US US-2 OEM Series
Navistar ? ? ? ? ? ? ? ? ? Cummins ? ? ? ? ? ? ?
Detroit ? ? ? ? ? ? Cummins ? ? ? ? ? ? DAF ? ? ? ? ? ? Cummins ? ? ? ? ? ? DAF ? ? ? ? ? ? Cummins ? ? ? ? ? ? Volvo ? ? ? ? ? Cummins ? ? ? ? ?
Broadest range of heavy-duty transmission offerings in the industry
? Customer Choice
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Integration: Transmissions
International ProStar
? Most Aerodynamic Class 8 Tractor in the Industry
Introduced Eaton-Cummins
SmartAdvantage AMT
? First-to-Market
? Outstanding Fuel Economy
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Integration: Transmissions
Allison TC-10
? Efficient Fully-Automatic
Transmission for Heavy-Duty
? First-to-Market
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Integration: Next Generation Safety Technologies
Safety Technologies
Lane Departure
Obstacle Detection
Collision Mitigation
Stability Control
Rollover Protection
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Integration: Next Generation Safety Technologies
Customer Choice
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Integration: Next Generation Safety Technologies
State-of-the-Art Next Generational Active Safety System
? First-to-Market
? Merges camera, radar and brake technologies
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Integration:
Seamless Integration with Major Suppliers
Speed to Market
Latest Technology
Customer Choice
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Product Development Efficiency
$600 Consolidated Engine and Truck Engineering
$500
Reduced Spend by more $400 than $200M
Conversion from EGR to
$300
SCR $200 ISX/ISB $100 Uptime!
$0
2012 2013 2014
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Doing Work Differently: Uptime
DATA
CAD Simulation
Leverage OnCommand Connection for Rapid Feedback
State-of-the-Art CAD Simulation
Deliver Uptime
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Proven Test�& Validation Capabilities: Uptime
During the last two years:
Built 200 validation vehicles and engines
Ran more than 11�million equivalent miles on dynos
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Extensive Field Testing: Uptime
During the last two years:
More than 15�million miles Cold/Ice Road of field testing
Special Track Cycles
Many loads, applications and environmental conditions
Dusty/Off Road
Altitude/Grades
Salt/Humidity
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Next Generation Products: Premium Vocational
Strong reputation
Reliable, durable chassis
Big power applications
? Cement Mixers
? Oil Field
? Specialized
? Heavy-Haul
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Next Generation Products: Horizon Platform
Aerodynamics
Fuel Efficiency
Flexible Interiors
? USB Ports/Connectivity
? Latest Telematics Equipment
? Personal Communication Devices
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Summary
Doing Things Differently
Demonstrated Results
? Uptime and Fuel Economy
Leveraging Global Supplier and Partners
? Leading-Edge Technology
? Customer Choice
Full Line of New Products Coming
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2015 ANALYST DAY FEBRUARY 4TH, 2015
WALTER BORST CHIEF FINANCIAL OFFICER
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Agenda
2013 � 2014: Drive to Deliver Progress
2015: Achieving Near-Term Earnings Growth
2017 and Beyond: Solidifying Our Place as a Market Leader
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2013 � 2014: DRIVE TO DELIVER
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Core North America Truck Revenue Improved ~10% in 2014
Core NA Truck Revenue Core North America
$7,000 revenue increased in 2014 due to a 6,400 unit $6,700 increase
2014 total revenue of
Core NA Truck Revenue ( $M)
$ 10.8B was flat year $6,100 over-year as we experienced lower sales
$6,000
in our Defense and Global businesses year- over-year
$5,000
2013 2014
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Cost Improvements Contributed to Increased EBITDA Margins
Gross Material Savings % Manufacturing Revenue Structural Costs % Manufacturing Revenue
3%
18%
16% 2%
14%
1%
12%
0% 10%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Warranty Expense % Manufacturing Revenue Manufacturing Savings % Manufacturing Revenue
12% 1.00%
9% 0.75%
6% 0.50%
3% 0.25%
0% 0.00%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
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4 Pronged Cost Approach to Improving Returns
Material Structural Manufacturing Warranty costs costs costs costs
LOWERED BREAK-EVEN POINT BY MORE THAN 50% SINCE 2012
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2015: DELIVER
NEAR-TERM EARNINGS GROWTH
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Adjusted EBITDA Margin Exiting 2015 Remains on Track
16.0%
10.0%
% Q4 �12 to Q4 �14 8-10%
Avg. Improvement Margin of ~5 pts. Per Year
4.0%
EBITDA 0.2% 3.9% .
Adj
(2.0%)
(6.2%)
(8.0%)
Q4 Q4 Q4 Q4 2012 2013 2014 2015
Note: This slide contains non-GAAP information; please see the
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REG G in appendix for a detailed reconciliation.
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2015 Q4 Adjusted EBITDA Margin Driven by Combination of Cost and Revenue Improvements
12%
Solid plans in place to achieve at least 8% adjusted EBITDA margin
8 � 10% in Q4 2015
1.3%
%
Cost improvements 1.6% continue to be significant
Margin 0.7%
6% portion of near-term EBITDA 2.5% plans to grow EBITDA
Adj. 3.9%
Upside opportunities exist depending on pace of market share recovery
0%
Q4 2014 Cost Revenue Q4 2015 Margin Improvements Drivers Margin
Note: This slide contains non-GAAP information; please see the
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REG G in appendix for a detailed reconciliation.
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Continued Cost Improvements will be Significant Portion of Q4 2015 EBITDA Margin Growth
Fully Implement
Previously Announced
Manufacturing Capacity Actions by Q4
Continued Material Structural Costs Cost Reductions of Approach 10% of
2 3% Per Year Revenues in Q4
Cost Improvements
Lower Breakeven Continue to Drive Point at our Brazilian Warranty Costs Operations Towards Best in Class Levels
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Revenue Growth Driven by NA Truck and Parts
Increased North America Year�Over�Year Parts Growth From Q4 Volumes Q4 2014
Revenue Drivers
Pricing Shift in Mix Toward Opportunities in Higher Margin Strong Market Products and Dealer Led Sales
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Adjusted EBITDA Margins Expected to Improve Each Quarter in 2015 Versus 2014
Adjusted EBITDA Margin
9% Q4 exit run rate is based on continued quarter over quarter 4-6% improvement
6%
%
Delivering full year Margin 2015 targets will 3% ensure fiscal year-end
2-4%
EBITDA 4.7%
3.9% goals are met
Adj. 3.0%
0%
(1.7%)
Denotes 2015 Direction
-3%
Q1 Q2 Q3 Q4 2014 2014 2014 2014
Note: This slide contains non-GAAP information; please see the
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REG G in appendix for a detailed reconciliation.
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2015 Revenue Expected to Grow Versus 2014
Core NA Truck Revenue Core NA Truck revenue
$8,000
expected to increase in conjunction with industry $6,900 � growth and market share
$7,200 gains M)
( $ $7,000
$6,700 Blue Diamond Truck Revenue venture scheduled to wind down this spring
Truck $6,100
NA Not expecting a recovery Core $6,000 in Brazil this year
$5,000
2013 2014 2015
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Focused On Reducing Structural Costs to Less Than 10% Of Revenues
Structural Costs Intense focus to drive 18% SG&A costs towards 15% industry benchmarks
Engineering expense
Revenue 12% 10�11%
projected to decline year-
12% Target
over-year as major Manufacturing engine conversions % completed
as
Costs 6% Structural
0%
2013 2014 2015
Note: This slide contains non-GAAP information; please see the
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REG G in appendix for a detailed reconciliation.
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Targeting Material�& Logistics Cost Reductions of 5% Over Time
Gross Material Savings*
3% Material and logistics savings driven by:
� Design cost reductions Revenue � Supplier consolidation
� Make vs. buy studies
2% 1.5 � 1.8%
1.7% � Logistics optimization
Manufacturing %
as 1.2% Product line executive Savings driving material content 1% optimization initiatives
Material Gross
0%
2013 2014 2015
*Excludes incremental SCR costs
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Warranty Expense as Percent of Revenue has Surpassed
3.7% Target and Trending Lower
Warranty Expense
9%
7.7%
4% point improvement Revenue achieved ahead of plan
6%
Q3 and Q4 2014 run
3.3�3.7%
Manufacturing rates demonstrate <3%
Target
% of revenue doable
3.7% as Expense 3%
Warranty
0%
2013 2014 2015
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Have Reduced Manufacturing Costs Since 2012 Through Footprint Consolidation and Lean Initiatives
$ millions
Manufacturing Savings Previously announced
$100
consolidation of midrange engine operations
$79
and closure of foundry $75 operations will deliver
M)
$ $40 � $60 $35M of savings
(
Savings Implementation of lean in
$50 $44
our plants making Manufacturing significant progress
$25 Continuing to study utilization/footprint optimization
$0
2013 2014 2015
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2017 AND BEYOND:
SOLIDIFYING OUR PLACE AS A MARKET LEADER
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2017�& Beyond Objectives
Focus on improving the balance sheet
Reduce cash requirements to run the business
Continue to drive EBITDA margins towards industry benchmarks
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No Significant Near-term Debt Maturities
$1,600 Debt maturity profile $1,444 significantly extended during 2014, providing $1,200 additional financial M) flexibility
( $
Maturities $800 $748
Debt Seeking to reduce leverage over time
$421 $400
$227
$100 $100
$0
2015 2016 2017 2018 2019 Thereafter
Note: Total manufacturing debt of $2.96B, as of October�31, 2014.
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Capital Spending Not Expected to Return to Historical Levels as We Partner More
$250 We continue to invest in our products to solidify $150-$200 $150-$200 our place as a market leader
M)
( $ $125 -$150 Anticipate that capital expenditures will Expenditures increase, but not return to historical levels
$88
Capital � Less proprietary engine programs
� More efficient spending
$0
2014 2015 2016 2017
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Pension�& OPEB Unfunded Status Forecast to Improve Materially by 2017
Pension Unfunded Status
$1,600 $1,414
M) $3B total Pension�& OPEB
( $
Status $1,200 unfunded status ending 2014
$800
$800 Anticipate a 24% decrease in
$600
Unfunded the unfunded status by 2017
$400
Pension under the current $0 assumptions
2014 2017 2017 (+100 bps)
Additional upside exists if
OPEB Unfunded Status
$1,800 discount rates increase
$1,542
M) $1,450
( $ $1,250 Status $1,200 Unfunded $600 OPEB $0
2014 2017 2017 (+100 bps)
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Improved Quality Expected To Drive Lower Warranty Liability
Improved quality $1,500 resulting in lower cost per unit $1,197 MaxxForce legacy units M) continue to work their
( $
way through standard Liability and extended warranty $800 periods
Warranty $605 On-Command
Connection helping to Product drive preventative $397 measures and increase uptime
Warranty spend will
$0
2014 2017 approach warranty
Warranty Liability Warranty Spend Warranty Expense expense
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Used Truck Inventory Elevated In Near-Term Before Declining
$500 Implemented new $425 Diamond Renewed certified used truck $400 $300�$350 program to help drive M) incremental sales
( $ $300
$300 Used Truck inventory will Inventory improve over time as the Truck amount of EGR units $200 moves through the trade
Used cycle Gross $100
$0
2014 2015 2016 2017
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Manufacturing Cash Uses Decline Significantly by 2017
2014 2017 Expect further improvement in liquidity due to:
� Interest expense
� Pension�& OPEB funding vs. expense
� Warranty spend vs. expense
� Stable Used Truck inventory levels
Investment in Capital Expenditure growth
Primary cash uses decrease by ~$200M
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Long-term Goal is 12-14% Adjusted EBITDA Margin
16%
12.0 � 14.0%
12%
%
Margin 8.0�10.0%
EBITDA 8%
. 5.0�6.0%
Adj
4%
2.7%
0.8%
0%
2013 2014 2015 2016 / Benchmark 2017
Note: This slide contains non-GAAP information; please see the International� is a registered trademark of, Inc.
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REG G in appendix for a detailed reconciliation.
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Conclusion
Demonstrated significant progress from 2012 � 2014
Confident in ability to achieve 8-10% adjusted EBITDA margin run rate
Long-term focused on improving the balance sheet while continuing to drive toward benchmark profitability
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2015 ANALYST DAY FEBRUARY 4, 2015
Q&A
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2015 ANALYST DAY FEBRUARY 4, 2015
THANK YOU
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APPENDIX
International� is a registered trademark of, Inc.
�
SEC REGULATION G NON-GAAP RECONCILIATION
SEC Regulation G Non-GAAP Reconciliation
The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles (�GAAP�). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP and are reconciled to the most appropriate GAAP number below.
We define EBITDA as our consolidated net income (loss) from continuing operations attributable to Navistar International
Corporation, net of tax, plus manufacturing interest expense, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information to the performance of our business and therefore we use it to supplement our GAAP reporting. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results.
Adjusted EBITDA:
We believe that adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year to year results, and is representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.
Adjusted EBITDA margin:
We define Adjusted EBITDA margin as a percentage of the Company�s consolidated sales and revenues. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.
Structural costs consists of Selling, general and administrative expenses and Engineering and product development costs.
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SEC REGULATION G NON-GAAP RECONCILIATION
Earnings (loss) before interest, taxes, depreciation, and amortization (�EBITDA�) reconciliation:
Quarters Ended
2014 2013 2012 (in millions) Jan. 31 Apr. 30 Jul. 31 Oct. 31 Oct. 31 Oct. 31
Loss from continuing operations attributable to NIC, net of tax.$ (249)�$ (298)�$ (3)$ (72)�$ (153)�$ (2,737)
Plus:
Depreciation and amortization expense . 86 99 71 76 87 77 Manufacturing interest expense(A). 65 57 60 61 63 56
Less:
Income tax benefit (expense) . 12 (23)�(14)�(1)�224 (2,167)�EBITDA.$ (110)�$ (119)�$ 142 $ 66 $ (227)�$ (437)
(A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the manufacturing and corporate operations, adjusted to eliminate intercompany interest expense with our Financial Services segment. The following table reconciles Manufacturing interest expense to the consolidated interest expense:
Quarters Ended
2014 2013 2012 (in millions) Jan. Apr. Jul. 31 Oct. 31 Oct. Oct. 31
Interest expense . 82 74 78 80 81 77 Less: Financial services interest expense. 17 17 18 19 18 21 Manufacturing interest expense . $ 65 $ 57 $ 60 $ 61 $ 63 $ 56
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SEC REGULATION G NON-GAAP RECONCILIATION
Earnings (loss) before interest, taxes, depreciation, and amortization (�EBITDA�) reconciliation:
Years Ended
October 31,
(in millions) 2014 2013
Loss from continuing operations attributable to NIC, net of tax $(622) $(857)
Plus:
Depreciation and amortization expense 332 417
Manufacturing interest expense (A)�243 251
Less:
Income tax benefit (expense)(26) 171
EBITDA $(21) $(360)
(A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the manufacturing and corporate operations,
adjusted to eliminate intercompany interest expense with our Financial Services segment. The following table reconciles Manufacturing interest
expense to the consolidated interest expense:
Years Ended
October 31,
(in millions) 2014 2013
Interest expense $ 314 $ 321
Less: Financial services interest expense 71 70
Manufacturing interest expense $ 243 $ 251
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SEC REGULATION G NON-GAAP RECONCILIATION
Adjusted EBITDA reconciliation:
Years Ended October
Quarters Ended 31,
2014 2013 2012
(in millions) Jan. 31 Apr. 30 Jul. 31 Oct. 31 Oct. 31 Oct. 31 2014 2013
EBITDA (reconciled above) $ (110)�$ (119)�$ 142 $ 66 $ (227)�$ (437)�$ (21)�$(360)
Less significant items of:
Brazil engine reporting unit impairment charges (A)�149 149
Adjustments to pre-existing warranties (B)�52 42(29)(10) 152 149 55 404
Brazil truck business actions(C) 29 29
North America asset impairment charges(D) 18 2 4 80 5 24 97
Mahindra Joint Venture divestiture(E)(26)
Legal settlement(F)(35)
Engineering integration costs (G)�9
Restructuring of North American manufacturing
operations(H) 14 27 4 41
Cost reduction and other strategic initiatives (I)�3 8 2 4 73 17 9
Total adjustments 73 201(9) 50 232 240 315 449
Adjusted EBITDA $ (37)�$ 82 $ 133 $ 116 $ 5 $ (197)�$ 294 $ 89
Adjusted EBITDA margin(1.7)% 3.0% 4.7% 3.9% 0.2%(6.2)% 2.7% 0.8%
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SEC REGULATION G NON-GAAP RECONCILIATION
Adjusted EBITDA reconciliation:
(A) In the second quarter of 2014, the Global Operations segment recorded asset impairment charges of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit.
(B) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods.
(C) In the fourth quarter of 2014, the Global Operations segment recorded approximately $29 million in charges, primarily related to inventory, to right size the Brazil
Truck business.
(D) In 2014 , the North America Truck segment recorded impairment charges related to certain amortizing intangible assets and long-lived assets which were determined to be fully impaired. In the first quarter of 2014, the Company concluded it had a triggering event related to potential sales of assets requiring assessment of impairment for certain intangible and long-lived assets in the North America Truck segment. As a result, the North America Truck segment recognized asset impairment charges of $18 million. In 2013, the North America Truck segment recognized asset impairment charges consisting of: $77 million related to the impairment of the North America Truck segment�s entire goodwill balance, which was recorded in the fourth quarter of 2013, and $20 million which were primarily the result of our ongoing evaluation of our portfolio of assets to validate their strategic and financial fit, which led to the discontinuation of certain engineering programs related to products that were determined to be outside of our core operations or not performing to our expectations.
(E) In the second quarter of 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra and the Global Operations segment recognized a gain of $26 million.
(F) In the first quarter of 2013, as a result of the legal settlement with Deloitte and Touche LLP, the Company received cash proceeds of $35 million.
(G) In the fourth quarter of 2012, the Company recorded $9 million of engineering integration costs related to the consolidation of our truck and engine engineering operations, as well as the relocation of our world headquarters. The North America Truck segment recorded the majority of these charges.
(H) In the fourth quarter of 2014 the North America Truck segment recorded $11 million of charges related to our anticipated exit from our Indianapolis, Indiana foundry facility and certain assets in our Waukesha, Wisconsin foundry operations which were impaired and certain other charges were recorded. The charges included $13 million of restructuring charges, $7 million of fixed asset impairment charges and $7 million of charges for inventory reserves. In the third quarter of
2014, the North America Truck segment recorded $14 million of charges related to the 2011 closure of its Chatham, Ontario plant, based on a ruling received from the Financial Services Tribunal in Ontario Canada. In the fourth quarter of 2012, the Company recorded $4 million of charges as part of its plan to cease operations and close its Garland, Texas manufacturing operations in the first half of 2013.
(I) In 2014, the Company recorded additional restructuring charges related to cost reduction actions that included a reduction-in-force in the U.S and Brazil. In the fourth quarter of 2013, the Company leveraged efficiencies identified through redesigning our organizational structure and implemented new cost-reduction initiatives, including an enterprise-wide reduction-in-force. As a result of these actions, the Company recognized restructuring charges of $9 million in the year ended October�31, 2013. In the fourth quarter of 2012, the Company announced actions to control spending across the Company and targeted reductions of certain costs. As a result of these actions, the Company recognized restructuring charges of $73 million in the quarter ended October�31, 2012.
International� is a registered trademark of Inc.
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